PUSHPAN TRAVELS Vs. COMMISSIONER OF SERVICE TAX, AHMEDABAD

JUDGEMENT

(1.) SERVICE tax of Rs. 1,72,025/- for the period from 1-4-2000 to 1-8-2005 paid by the appellant towards rent a cab service before the issue of show cause notice has been adjusted. Interest has been demanded and penalties have been imposed under various Sections of Finance Act, 1994.

(2.) THE learned consultant on behalf of the appellants submits that appellant has only one cab purchased on loan from the bank and it was because of the ignorance that he did not pay the tax. As soon as the liability was pointed out, before issue of show cause notice, the appellant paid the full amount of service tax. He requests that this is a fit case for application of Section 80 of Finance Act, 1994 and seeks waiver of penalties under various sections. He relies on several decisions in support of his contention. On the other hand learned DR submits that penalty is imposable and person who is guilty of suppression deserves no sympathy under Section 80 of Finance Act, 1994 and relies upon the decision of the Honble High Court of Kerala in the case of Krishna Poduval reported in 2006 (1) S.T.R. 185 (Ker.).

(3.) I have considered the submissions made by both the sides. In this case appellant is the owner of a single cab and is not a very literate person. Further, as soon as it was pointed out he has paid the tax. This shows that there was no intention to evade tax. Taking into account the fact that appellant is an owner of a single vehicle and is an individual, I consider this to be a fit case for application of provisions of Section 80 of Finance Act, 1994 and set aside the penalties imposed. Accordingly, penalties imposed under various Sections of Finance Act, 1994 are set aside. (Pronounced in Court)